Rockledge Manager Wants Bell To Pay Up

August 3, 1985|By Stephen Kindland of The Sentinel Staff

ROCKLEDGE — City Manager Gus Hipp wants to charge Southern Bell -- which hasn't paid Rockledge a penny in franchise fees for 10 months -- the same 6 percent the city charges Florida Power and Light Co.

But a state law that went into effect July 1 won't allow it.

Tom Hunt, district manager for Southern Bell, said the new law puts a 1 percent limit on franchise fees for telephone companies, and that he is waiting to hear from city officials in Rockledge before his company begins making payments.

A 30-year contract between the city and Southern Bell expired Sept. 30. Since then, Southern Bell has paid nothing to the city.

It has, however, been charging Rockledge the full amount for monthly service and two lines.

The city had been receiving a 33 percent discount on monthly charges and two free telephone lines in place of a franchise fee since the contract was signed in 1954.

''This thing could lead into where we owe them money,'' Hipp said.

Southern Bell in February offered to pay a 2 percent franchise fee. Under that plan, $19,000 of the $22,000 fee would have been applied toward the company's property tax, resulting in a net payment of $4,000.

The 1 percent limit does not include the property tax deduction, so Southern Bell's franchise fee payment will be about $11,500.